10. Impairment of Investments

Management reviews its investment portfolio for other than temporary impairment on a quarterly basis. The review includes an analysis of the facts and circumstances of each individual investment such as the severity of loss, the length of time the fair value has been below cost, the expectation for that security's performance, the creditworthiness of the issuer, and the timely receipt of contractual payments. Additional consideration is given to the fact that it is not more-likely-than-not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity,

In reviewing its available for sale securities at March 31, 2012, for other than temporary impairment, management considered the change in market value of the securities in the first three months of 2012, the expectation for the security's future performance based on the receipt, or non receipt, of required cash flows and Moody's and S&P ratings where available. Additionally, management considered that it is not more-likely-than-not that the Company would be required to sell a security before the recovery of its amortized cost basis. Any unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if the market yields for such investments decline. Based on this criteria management concluded that no additional other than temporary impairment ("OTTI") charge was required.

At March 31, 2012, the Company had two corporate debt securities with a face amount of $2.0 million and an unrealized loss of $516,000, which was an improvement of $53,000 over the December 31, 2011 unrealized loss. These two securities are rated A2 and BA1 by Moodys indicating these securities are considered of low to moderate credit risk. The issuers of the two securities are two well capitalized banks. Management believes that the decline in market value is due primarily to the interest rate and maturity as these securities carry an interest rate of LIBOR plus 55 basis points with maturities beyond ten years.

Investments that have been in a continuous unrealized loss position as of March 31, 2012 and December 31, 2011 are summarized as follows: (dollars in thousands)

As of March 31, 2012	Less than Twelve Months					Twelve Months Or Longer					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Collateralized mortgage obligations issued by:
Private Label	$	2,532	$	(13	)	$	3,281	$	(19	)	$	5,813	$	(32	)
Mortgage backed securities issued by agencies		16,911		(54	)		0		0			16,911		(54	)
Corporate debt		0		0			1,454		(516	)		1,454		(516	)
Municipal bonds		4,501		(44	)		0		0			4,501		(44	)
Total Temporarily Impaired Securities	$	23,944	$	(111	)	$	4,735	$	(535	)	$	28,679	$	(646	)

As of December 31, 2011	Less than Twelve Months					Twelve Months Or Longer					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Collateralized mortgage obligations issued by:
GSE agencies	$	1,637	$	(10	)	$	0	$	0		$	1,637	$	(10	)
Private Label		6,079		(59	)		3,911		(17	)		9,990		(76	)
Mortgage backed securities issued by agencies		27,956		(112	)		0		0			27,956		(112	)
Corporate debt		0		0			1,400		(569	)		1,400		(569	)
Municipal bonds		983		(32	)		397		(4	)		1,380		(36	)
Total Temporarily Impaired Securities	$	36,655	$	(213	)	$	5,708	$	(590	)	$	42,363	$	(803	)